Nikola founder and executive chairman Trevor Milton is stepping down from the company’s board of directors after allegations that the zero-emission vehicle start-up misled investors, the company announced on Sunday.
Milton will be replaced by existing board member Stephen Girsky, a former vice chairman of GM, who will become Chairman of the Board. Bloomberg reports the company’s shares fell 22 percent in US pre-market trading.
Nikola’s Chief Executive Officer Mark Russell said: “We remain committed to delivering on our objectives and creating value for our shareholders.”
Nikolahas been under intense scrutiny after a report claimed the company had engaged in lies and deception. Hindenburg accused the company of exaggerating the progress of its technology, in particular claiming that the company had staged a video showing one of its trucks cruising down a hill.
Nikola called the report false and defamatory and said that it contained dozens of inaccurate statements. It claimed that Hindenburg was attempting to use its report to negatively manipulate the market.
Milton published a statement on Twitter explaining his rationale and next moves. “He said: “The focus should be on the Company… not me. I plan to defend myself against false allegations leveled against me by outside detractors and would be cheering from the sidelines for the company.”
